Chittorgarh logo
Contact Us   Facebook   Go
IPO's in India
  IPO Dashboard
  Current IPO List
  IPO Calendar
  Performance Tracker
  Grey Market Premiums
  IPO Ratings
  IPO Reviews
  IPO Message Board
  Basis of Allotment
  IPO Alerts
  IPO Prospectus Docs
  IPO Reports (Historic)
  IPO News Live
  IPO FAQs
  IPO Alert Blog
Current IPOs-BSE, NSE
More IPO's...
Current SME IPO's
More SME IPO's...
Current Bonds / NCDs
More Bond's, NCDs...
Subscribe with us...
 Free Email Alerts
 Name
 Email 

India Stock Market
  Stock Message Board
  Stock Market Home
  NSE Bulk Deals
  NSE Circuit Filters
  Corporate Announcements
  Market Holidays
  Stock Gadgets
Stock Trading Brokers
  Broker Comparison
  Stock Broker Articles
  Discount Brokers
  Zerodha (Trade at Rs 20)
  RKSV
  Trade Smart Online TSO
  Traditional Brokers
  ICICI Direct
  Sharekhan
  Kotak Securities
  SBI Securities
  HDFC Securities
  Reliance Securities
  Bajaj Capital
  Standard Chartered
  Geojit BNP Paribas
  IDBI Capital
  Motilal Oswal
  Angel Broking
  Ventura
  Indiabulls Securities (ISL)
  India Infoline (IIFL)
  Religare Broking

Sangam Advisors IPO Review by Dilip Davda

  

 

Dilip Davda says 'Avoid' to Sangam Advisors Ltd IPO

Date Posted: Jul 20, 2012

IPO Review List   |    IPO Detail

Issue Summary

While the primary market is at stand sill as secondary market is witnessing lackluster performance amidst ongoing uncertainties and paralyzed economic reforms process. Although PM has taken over reins at Finance Ministry, his action has just remained on paper and no actual things have shaped in a concrete manner and thus market is waiting for the real move in action. It is hoped that post President's election results, things will take shape for betterment as this Government has just around 18 months to regain its lost glory. All eyes are now on Dr. Manmohan's action and waits for some magic like 1991 rally. Just wait and watch.

Amidst such scenario, we are seeing more and more BSE-SME IPOs queuing up for funds mobilization. According to primary market sources there are about three SME IPOs set to enter the primary market before this month end. One such IPO of Sangam Advisors is opening on 24.07.12 for a paltry amount of Rs. 5.07 crore mobilizations.

Sangam Advisors Ltd. (SAL) is promoted by Giza Estates Pvt Ltd and is engaged in the business of providing diversified financial services with a primary focus in assisting small and medium enterprises (SMEs) in corporate and non-corporate sector in their financial planning, corporate restructuring and fund syndication requirements. It is also in the business of investing in shares and other securities by leveraging its disciplined investment approach developed by its in-house experienced senior management team.

The total Public issue of 23,04,000 equity shares of Rs. 10/- each of SAL for cash at price of Rs. 22/- per share aggregating to Rs. 5.07 crores. Of which, 3,42,000 equity shares of Rs. 10/- each will be reserved for subscription by Market Makers to the issue. The balance issue of 19,62,000 equity shares of Rs. 10 each being the "Net Issue". The issue and the net issue will constitute 37.75% and 32.15%, respectively of the post issue paid up equity share capital of the company. The average EPS of the company for last three fiscal is just Rs. 0.36 on old equity and NAV is at Rs. 11.56 as on 31.03.12 . This makes it highly priced issue.

The issue is opening on 24.07.12 and will close on 26.07.12. Minimum application is to be made for 6000 shares and in multiples thereof. The funds so mobilized will be used for investments in listed/unlisted securities and general corpus needs. Issue is lead managed by Aryaman Financial Services Ltd. and Purva Sharegistry (India) Pvt. Ltd is registrar to the issue. Lead Manager has poor track record for IPO mandates.


Conclusion / Investment Strategy

Only HNIs' with surplus funds can opt for this IPO for listing gains, if any, as current market scenario is not in favor for this offer at the asking price.


IPO Review Author

About Dilip Davda

Dilip Davda, a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Corporate India, Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.

Email: dilip_davda@rediffmail.com